What Is the USDA Value-Added Producer Grant, and Who Can Apply?

The Value-Added Producer Grant (VAPG) is a competitive USDA Rural Development grant that helps farmers, ranchers and producer-owned businesses turn raw agricultural commodities into higher-value products and market them. Agricultural producers, producer groups, farmer or rancher cooperatives and majority-controlled producer-based businesses can apply if they own and produce more than 50% of the raw commodity.

$25 millionFor fiscal year 2026, about $25 million was available, with planning grants of up to $50,000 and working capital grants of up to $200,000.
$50,000For fiscal year 2026, about $25 million was available, with planning grants of up to $50,000 and working capital grants of up to $200,000.
$200,000For fiscal year 2026, about $25 million was available, with planning grants of up to $50,000 and working capital grants of up to $200,000.
50%Every applicant type must currently produce and own more than 50% of the agricultural commodity used for the value-added product.

The Value-Added Producer Grant (VAPG) helps agricultural producers start or expand value-added activities: generating new products from raw agricultural commodities, creating and expanding marketing opportunities, and increasing producer income. It is run by USDA Rural Development's Rural Business-Cooperative Service and awarded through a nationally competitive process. For fiscal year 2026, about $25 million was available, with planning grants of up to $50,000 and working capital grants of up to $200,000. Every applicant type must currently produce and own more than 50% of the agricultural commodity used for the value-added product. The fiscal year 2026 application window ran from February 17, 2026 through 1:00 p.m. Eastern Time on April 22, 2026, and USDA lists the program as closed. USDA says it will post the next funding notice on the program website when it is available.

Last checked: November 4, 2026. This page explains the rules only. It is general information, not legal, tax, or financial advice.

The short version

Two kinds of grants: planning grants pay a qualified consultant for a feasibility study, business plan or marketing plan. Working capital grants pay post-harvest costs of processing and marketing the product.
You can apply for one or the other, not both in one application, and only one application per funding round.
You must match the grant at least dollar for dollar with cash or eligible in-kind contributions.
The project period can't run longer than three years from the award date.
Grant money can't pay costs incurred before the grant is approved.
VAPG isn't a loan, a job training or technical assistance program, a research and development fund, or a continuous stream of capital.

Who qualifies

Agricultural producers, including harvesters and steering committees.
Agricultural producer groups.
Farmer or rancher cooperatives.
Majority-controlled producer-based business ventures.
All applicants must own and produce more than half of the raw commodity and own the product from its raw state through the finished value-added product.
The product must add value in one of five ways: a change in physical state, production in a way that enhances value, physical segregation, farm- or ranch-based renewable energy, or a locally produced agricultural food product.
Not eligible: applicants that are debarred or suspended from federal programs, are delinquent on federal taxes or federal debt, or were convicted of a federal felony within the past 24 months.
Priority can go to beginning, veteran and socially disadvantaged farmers or ranchers, small and medium family farms, cooperatives, and mid-tier value chain projects. By law, 10 percent of funds are reserved for each of three groups: beginning, veteran and socially disadvantaged producers, mid-tier value chain projects, and food safety projects.

What the money can and can't pay for

Working capital grants can cover costs such as processing, packaging, advertising, inventory and salaries tied to the value-added product. Planning grants can only pay a qualified consultant for a feasibility study, business plan or marketing plan. Neither can be used to build, buy or repair a building or facility, buy or install fixed equipment (with limited exceptions), buy vehicles, buy or improve real property, fund research and development, pay for preparing the grant application, or cover the cost of growing the crop or raising the commodity itself.

How to get it

How to get started

Take USDA's VAPG Self-Assessment Survey on the program page. It's optional but strongly encouraged.
Contact the Business Program Specialist at your USDA Rural Development State Office to talk through your project.
Register in SAM.gov and get your Unique Entity ID. Registration is free but can take time, so USDA recommends starting at least a month before the deadline.
Create a Level 2 USDA eAuthentication account, which you need to use the Grant Application Portal.
Line up your matching funds and gather documents, such as the quantity of each commodity you'll use if you're asking for working capital.
Watch the VAPG program page for the next funding notice, then submit through the Grant Application Portal before that deadline.

Programs that may match

Look beyond the VAPG

Turning your product into a food business? See restaurant grants in 2026.Processing at scale? See manufacturing grants and incentives.See other federal grants for new businesses.Find other programs you may qualify for with FundPlenty's free match at fundplenty.com.

FAQ

When is the Value-Added Producer Grant deadline?

The fiscal year 2026 round closed at 1:00 p.m. Eastern Time on April 22, 2026. USDA lists the program as closed and says it will post the next funding notice on the program website when it is available.

How much can I get from a Value-Added Producer Grant?

In fiscal year 2026, planning grants went up to $50,000 and working capital grants up to $200,000, out of about $25 million available. For that round, the Administrator could award priority points to applicants requesting less than $125,000.

Does the VAPG require matching funds?

Yes. Your match must be at least equal to the grant amount, so grant plus match equals the total project cost. It can be cash or eligible in-kind contributions, and it must be spent on eligible project costs.

Can a food business that buys all its ingredients apply?

Generally no. Every applicant type must currently produce and own more than 50 percent of the agricultural commodity used for the value-added product.

Can I pay a grant writer to help with my application?

You can work with collaborators, but grant funds can't pay for preparing the application. In the fiscal year 2026 round, applicants had to disclose who they paid and how much, and if the fee was more than 15% of the requested grant, the application wasn't eligible for Administrator priority points.

Can VAPG money pay for equipment or a building?

Generally no. The rules bar using grant or matching funds to build or buy a facility, buy or install fixed equipment (with limited exceptions), buy vehicles, or buy or improve real property.